The economic scenario continued to oscillate in 2013, given the slow recovery in the United States, the slowdown in China, low gross domestic product (GDP) growth in Brazil and the benchmark interest rate (Selic) by the Central Bank. Within this context, one of the major challenges for the financial sector was to adapt to a level of lower spreads, in which there is a need to enhance the risk management models in order to keep delinquencies under control.
In spite of this scenario, Banco do Brasil (BB) achieved positive results, attaining or exceeding our expectations. In 2013, we produced record net earnings of R$15.8 billion, assets amounting to R$1.3 trillion, and we reaffirmed our position as leader in lending within the Brazilian Banking Industry (SFN), with a broad concept portfolio of R$692.9 billion. The bank was also successful in the public offering (IPO) of BB Seguridade S.A., our holding company responsible for consolidating all activities in the insurance, supplementary pensions, saving bonds and similar segments. The BBSE3 shares debuted on the BM&FBovespa, listed on the Novo Mercado segment as the world’s largest IPO in 2013.
Strengthening our role as a partner in Brazil’s development, we expanded our presence to 99.9% of Brazilian municipalities, which has contributed to bankarization and financial education. We continue with our social businesses in line with public policies such as the Minha Casa Minha Vida (PMCMV) Program, The Student Financing Fund (Fies), Family Agriculture Development Program (Pronaf), Oriented Productive Micro Credit (MPO) and BB Accessibility Loans.
Given its size, capillarity and the values in which it believes, the bank is an institution capable of bringing a positive influence to bear on society to adopt more sustainable practices. To that end, we manage the Agenda 21 of Banco do Brasil, our strategic sustainability plan, which includes steps for inducing customers and suppliers to adopt sustainability criteria, among other actions. We also reiterate our full commitment to the 10 principles of the Global Compact, through a series of initiatives and by participating with the 30 companies that comprise the Brazilian Committee of the Global Compact. The efficacy of our strategy was once again acknowledged by the market in 2013, when we retained our position for the 2nd year on the Dow Jones Sustainability Index (DJSI), and for the 9th year on the Corporate Sustainability Index (ISE) of the BM&FBovespa. This endorses the strategy of doing business with a management team whose every decision-making process takes into account the environmental and social impacts of its activities.
As undisputed leaders in agribusiness loans, our challenge is to continually increase the offer of funds to the sector, so as to contribute to its competitive position on the global market. Infrastructure investments in Brazil – notably in the energy, shipbuilding, oil and transportation sectors – will require even greater capacity to provide loans.
For the period 2014 to 2018, we will continue to allocate priority to enhancing efficiency and productivity and to generating sustainable results. We will strive to establish long-lasting relationships with customers, based on transparency and on reliability of service, in addition to introducing innovative solutions in channels and differentiated products and services for each requirement.
Finally, we would like to thank our more than 112,000 employees for their dedication and efforts, without which Banco do Brasil would not have attained such significant results. The ethical and responsible behavior of the teams and each employee’s quest for personal and professional development are the sources of our growth. The content of this Annual Report is, above all, the portrait of our daily efforts to be the bank that helps Brazil grow.
ADRIANA QUEIROZ DE CARVALHOVice-Chairman of the Board of Directors
ALDEMIR BENDINEPresident of Banco do Brasil